In this paper we propose the use of intra-frame prediction with lapped transforms for image coding. Both lapped transforms and intra prediction exploit the redundancies of neighboring blocks and the combination of the two techniques results in a very efficient image coding scheme. The difficulty to combine them comes from the necessity to use for the prediction of the current block pixels in the causal neighborhood that have not been completely processed by the overlapping transform. We show how to overcome this difficulty, and thus the system presented here outperforms the traditional one, using intra-prediction and DCT, and the direct application of lapped transforms in all tested images.